Airbus, Boeing delivery delays pushing up lease rentals

Mumbai/New Delhi: Growing delays in deliveries of new Boeing and Airbus planes amid a rush by carriers to add long-distance and international routes, including from India, have pushed up lease rentals of the long-haul passenger aircraft by at least 15%.
Those lucky airlines holding a guaranteed near-term delivery slot for such type of planes could potentially sell or swap these guaranteed delivery slots for a profit to another airline that needs them more urgently even though soaring fuel prices makes newer planes that much more desirable for many carriers, including in the US and Europe where an economic slowdown is leading to a re-evaluation of aircraft needs.
Airbus SAS last week informed its customers that there could be delays in the delivery schedule of the super jumbo A380 for 2009 and 2010.
Seattle-based aircraft maker Boeing Co. has already announced delays in the delivery schedule of the fuel-saving Boeing 787 Dreamliner.
Indian customers of these aircraft including the UB Group-owned Kingfisher Airlines Ltd and National Aviation Co. of India Ltd-run Air India are likely to be the ones most affected by the delays.
20/05/08 P.R. Sanjai and Tarun Shukla/Livemint

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Categories: Indian Aviation- In General May 2008